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Defense officials and executives agree that the top priority for research and development in the industry is affordability. "You don't create markets unless you have a differentiated product at a price point that people are willing to pay," said Daryl Davis, president of a Boeing division for advanced research and prototyping.

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Chief of Naval Operations Adm. Jonathan Greenert said the recent attack in the Navy Yard was not due to budget cuts for security. "We don't cut budgetary corners for security," he said before the House Armed Services Committee. The committee is investigating whether cuts due to sequestration contributed to the incident.

NASA is turning to commercial firms such as Orbital Sciences to deliver supplies to the International Space Station. "By turning over [resupply services] to Orbital, NASA can focus on the more challenging human missions," said Alan Lindenmoyer, program manager of NASA's Commercial Crew and Cargo Program.

Boeing is performing better than other defense contractors under sequestration, according to a report by UBS Research. The report predicts military procurement for Boeing will drop by 1% in compound annual growth rate over a three-year period.

The four service chiefs testified before the House Armed Services Committee on Wednesday, painting a dire picture of the future of the U.S. military in the wake of looming budget cuts. All four agreed that the cuts would make them unable to meet the nation's security demands. "These reductions will put at substantial risk our ability to conduct even one sustained major combat operation," said Army Chief of Staff Gen. Ray Odierno.

Leon Panetta, former Pentagon chief, criticized President Obama for asking Congress for approval on military action in Syria. "When the president of the United States draws a red line, the credibility of this country is dependent on him backing up his word," Panetta said. Meanwhile, former Pentagon chief Robert Gates said military action in Syria would be a mistake altogether.